Badung postpones IDR 1.67 trillion loan, Gatsu Barat–Canggu tunnel now targeted to start in 2028

At a Badung council plenary session on 29 October 2026, the regency government postponed a planned new regional loan of IDR 1.67 trillion in the draft 2027 budget. The money was originally meant to ease severe congestion on the Gatot Subroto Barat–Canggu corridor through North Kuta and Mengwi. Badung Regent I Wayan Adi Arnawa said the project cannot be executed in 2027, so borrowing that year would only add interest and repayment costs. "Why would we borrow money?" he said.

Land acquisition in the densely built area proved difficult because many homes and businesses cannot be relocated. The concept was therefore changed from a conventional road to an underground tunnel network. In 2027, technical studies, a feasibility study and administrative documents will be funded from Badung's own revenue (PAD), while physical construction is targeted to start in stages from 2028. Badung council chair I Gusti Anom Gumanti backed the postponement and asked that preparations continue.

Outline of the plan (still under study)

• The Gatsu Barat–Canggu segment is about 3.2 km, with a 2.4 km main tunnel roughly 15 metres underground (Badung Public Works, September 2026).
• The tunnel is estimated to cost about IDR 3.5 trillion. Badung is exploring cooperation with Chinese firm Shanghai Tunnel Engineering Co. (STEC).
• If built, Badung plans electronic road pricing (ERP) on this segment.

What it means for buyers and investors

Relief from Canggu–Kerobokan traffic will not come soon: construction starts in 2028 at the earliest and still depends on a new loan. Property in Canggu, Berawa and Kerobokan should be valued on today's access, not on promised infrastructure. Landowners along the corridor should watch for the final alignment, as the tunnel and its access roads could affect nearby land.

News summary. Project plans, costs and timelines may change. Not investment advice.